Market Analysis: ​USDJPY is holding above 107.70 – will there be a push towards 110 into the weekly close?

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  • 19.01.2019
  • Comments Off on Market Analysis: ​USDJPY is holding above 107.70 – will there be a push towards 110 into the weekly close?

USD/JPY - Market Analysis

After our sceptical outlook for the USDJPY on Monday and the risk of a break below 107.70, which could drive the USDJPY pair down to its Flash Crash lows from 2 January of around 105.00, the USDJPY pair could stabilize. And it seems as if the ongoing US shutdown does not negatively affect the US equity markets, as USDJPY has traded back towards and above 109.00 JPY.

USDJPY 4 Hour Chart

Source: Admiral Markets MT5 with MT5SE Add-on DAX30 CFD chart (between 18 October 2017 to 17 January 2019). Accessed: 17 January 2019 at 10:00 PM GMT – Please note: Past performance is not a reliable indicator of future results, or future performance – In 2014, the value of USDJPY increased by 13.7%, in 2015, it increased by 0.5%, in 2016 it fell by 2.8%, in 2017 it fell by 3.6%, in 2018 it fell by 2.7%, meaning that after five years, it was up by 4.1%.

While the overall picture is still tense and traders are looking at the currency pair on a daily chart seeing a potential short-trigger in the region around 109.70/110.00, short-term traders probably consider long-engagements to be attractive, and the chances of USDJPY pushing towards 110.00 into the weekly close, a likely eventuality. This seems especially true, because several US economic datasets are delayed due to the US shutdown, and if no new negative data can surprise market participants, chances are higher that the current momentum on the upside lasts, at least as long as USDJPY trades above 107.70.

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